Cash pot - realistic monthly return on investment

[james138_yahoo_com]

Hi all 

Potentially I will have around 700k on investment and I would be looking to purchase as many houses as possible to replace my work income. Ideally I'm thinking of Liverpool to invest and would be putting down 25% on each property. Realistically how much income do you think it's viable to generate per month (taking into account all expenses and I would be a hands off Investor)? As I'm only interested in cash flow initially.

All comments appreciated - thanks in advance

James

[james138_yahoo_com]

Thanks Richard

Yes I'm fortunate and ideally would like to split money between investments (shares) and property. To buy flats in bulk can you go directly to the house builder or usually do you need to go via an intermediary and pay them a sourcing fee?

James

[haf1963]

This is a super complex questoin with too many variables to give a straight answer.  As a start lets assume yopu get 10 properties at 150k each giving 700 minimum in rent (numbers work in the midlands so could be better in liverpool etc). at 40k per properties for deposit and expenses then you are looking at 10 properties. Assuming each one has a 50% mortgage interest cost and 10% management plus 10% buffer then you are looking at 30% return so 200 per house i.e 2000 per month for all 10. The 10 properties would have cost you 400,000.

There are a huge amount of factors not considered eg - unlikley you will get 10 mortgages, - tax implications depending on personal versus LTD plus a load of other things

Then there are options like HMO or buying blocks of flats and many others so you really need a lot more advise than this forum to be honest. The numbers above are so rough that I would not be making decisions on them for sure. You could probbaly double the 2k per month by doing this differently - but those will bring you into different challenges

 

[james138_yahoo_com]

7 hours ago, haf1963 said:

This is a super complex questoin with too many variables to give a straight answer.  As a start lets assume yopu get 10 properties at 150k each giving 700 minimum in rent (numbers work in the midlands so could be better in liverpool etc). at 40k per properties for deposit and expenses then you are looking at 10 properties. Assuming each one has a 50% mortgage interest cost and 10% management plus 10% buffer then you are looking at 30% return so 200 per house i.e 2000 per month for all 10. The 10 properties would have cost you 400,000.

There are a huge amount of factors not considered eg - unlikley you will get 10 mortgages, - tax implications depending on personal versus LTD plus a load of other things

Then there are options like HMO or buying blocks of flats and many others so you really need a lot more advise than this forum to be honest. The numbers above are so rough that I would not be making decisions on them for sure. You could probbaly double the 2k per month by doing this differently - but those will bring you into different challenges

 

Thanks - I need to think about it further. Ideally buying in bulk sounds attractive as should be able to purchase a few properties at a discounted price. Thanks for the suggestions very much appreciated!

James